UPDATE: China's HSBC PMI came at 49.3 (slightly below the Flash print) but up from last month

The seemingly exuberant levels of the China Manufacturing PMI data when compared to HSBC's Manufacturing PMI have largely disappeared now as the two are the closest together in 9 months. As China's PMI drops to its lowest print in 8 months at 50.1 (less than the expected 50.5), we note that 10 of the 11 sub-indices (including employment and new orders) are all lower and now in contraction mode. Only the Output sub-index remains above 50 (in the if-we-build-it-they-will-come period). New Export Orders also fell notably. Of course having learned their lesson with the unintended consequences of their last major stimulus effort, we suspect the PBoC will be a little more careful with the method to resuscitate this time.

We will update later with the final HSBC print (as opposed to the Flash print below)...

On the contrary, if you have trillions of US dollars that are about to become worthless what do you do?

You build empty cities, building projects and future infrastructure by trading your fiat reserve dollars for labour and bulk construction materials on the world market. 5-10 years from now those projects will still retain some if not all their value unlike the fast sinking US dollar.

Resource companies in Australia are suspending projects and laying off workers as China slwos it's coal and iron demand. Melbourne house prices are falling fast and defaults rising. The RBA is scared. They said the RBA is ready to print if need be to prop up the economy (aka, house prices).

I totally agree EKM. The HSBC print comes in under 50 but the highest print in 5 months. The Flash comes in just over 50. Some dip shit at another (WEB) site plugs the HSBC print as expansion. WHAT A F..KING RETARD! ANYTHING UNDER 50 is just slower contraction. The aud/usd proceeds to rally 20 pips on complete shit news.